>> bmc software. huge activity in january. >> keep an eye on linn energy and keep an eye on tim tebow. it might be this week. >> happy columbus day weekend, you guys. you know who you are. o.i., owens, illinois. "power lunch" now. >> announcer: halftime is over. the second half of the trading day starts right now. 7.8% unemployment. did president obama just win next month's election? jack welch says hold your horses on that 7.8% number. he doesn't really believe it. an influential florida congressman agrees. we'll talk to that congressman live and ask him on what he bases his suspicions. a place in the united states where gasoline has now become hard for drivers to find. you will find out why coming up on "power lunch." meantime, let's go to sue at the new york stock exchange. sue? >> the markets have been up all day long. we're up about 60 points or so

on the dow jones industrial average and the big reason of course is the number that we got this morning, falling unemployment. we are now below the 8% level for the first time in four years. the question is how did we get there? here to explain all of that, our senior economics reporter steve leisman. steve? >> sue, thanks very much. sue, this number is a product of simple math. but whether it's telling us about the real strength of the job market is something investors and the fed are going to have to think long and hard about. take a look at how we got here. first a little bit of the math. the unemployment rate is calculated by essentially taking the number of unemployment and simply dividing it by the labor force. plug in the numbers. 7.8% unemployment rate gives us -- calculates from 12.1 million unemployed divided by the 155.1 million labor force. you can do that at home, if you like. and now here's what happened this month. okay? the number of unemployed dropped by nearly half a million.

down by 456,000. the number of employed in this household survey up by 873,000. but wait, because the one thing we're watching here is the number of people who were employed but were part-time but they wanted full time work. we call it for economic reasons. up by 582,000. that's the third september surge in a row. some people suggest there is a certain seasonality to that. this household survey -- here's the unemployment rate right there, last several months. this survey is the result of a monthly survey of 60,000 households. it is huge for a survey. but much smaller than the separate payroll survey which gathers actual data from businesses. historically far more volatile than the payroll survey which showed 114,000 jobs. but when you adjust for differences in how they count jobs, it is about 1.3 million jobs created in 2012 so far. the monthly average for the payroll survey has crept up steadily since june, now 145,000. one of the interesting things here is the household survey

does measure self-employed. so sometimes when you have a pick-up in hiring, people first report themselves as self-employed, we're going to put an asterisk next to that. >> nothing beats a good data kerfuffle and we got a doozy right now. jack welch setting off a bit after firestorm this morning. shortly after the report, welch tweeted this out. unbelievable jobs numbers. he doesn't mean it in a positive way. he means it unbelievable. these chicago guys will do anything. can't debate so change numbers. a few moments later, hilda solis fired back. >> i'm very disappointed to hear that.

we have a very professional service organization with top officials working in the bls. our most trained and skilled individuals. it is really ludicrous to hear that kind of statement. >> representative allan west is a florida republican and he says he agrees with mr. welch. congressman, good to see you. >> thank you very much. how are you all? >> what do you believe what mr. welch says and not what the secretary of labor says. >> it is not about believing what mr. search says. it is about studying the numbers. we continue to see these inconsistencies and revisions upwards and downwards. work force participation rate still remains at a 30-year low. when you compare this to the u6 computation which takes into account unemployed, underemployed and discouraged numbers, that number didn't move. it stayed at 14.7%.

>> you are alleging not that the data are inconsistent, you are alleging specifically that the president is engaging in a coverup of the data. you are saying that the administration is actively manipulating that data. correct? >> well, absolutely. look at what happened with our gdp numbers. fourth quarter gdp numbers last year were at 3%. >> do you have any basis on which you say that? any source, any one that's come to you and said this is the case? do you realize how difficult it is -- would it be for someone in theory to pull off that kind of conspiracy given the number of people in the labor department, given the number of surveyors who are out there, one of whom would probably say, hey, wait a minute, that's not the right number! >> well, if you would stop yelling in my ear and allow me to answer your questions, maybe we could get to the bottom of this. when i look at the gdp numbers which have gone dpr 4.1% and went to 1.9%, then it was a

1.7%. it got revised down just about a month ago to 1.3%. we've got numbers that are all over the place and we don't understand really the direction this economy is going. when i look on the ground down here where i am in south florida, here in palm beach county we've got unemployment that's above 9.5%. knot to the north in martin county, almost 10%. into st. lucie county, it is 13%. i don't see these numbers that people are talking about and i don't understand how they can come back later in this month and say that they're revising the numbers from july and august, that they go back and do another survey. so i'm very questionable of what we do see coming out of this administration because the numbers don't add up. even on thursday we had an uptick of the first time unemployment jobs -- whatever you want to call it, the unemployment request on thursday. so something's inconsistent here and that's what i am questioning. >> this seems to me, frankly, congressman -- and i don't mean to be disrespectful, but this seems as curious in its way,

these allegations, as the allegations of senator reid a couple of months ago who said based on sources he was not willing to name that he had information indicating that governor romney paid no taxes. if this were to be true -- >> tyler, tyler, tyler -- >> if this were to be true sir. >> tyler, stop. >> let me finish my thought. >> did the workforce participation rate change? no. it's still a 30-year low. did the u6 computation 14.7% change? no. so how is it that we had a drop of .3 percentage point on the unemployment rate if these other statistics which related to that do not change? and don't challenge my intelligence, because i tell you, it wasn't too long ago that we were being told that a video was the imminence for this spontaneous attack that ended up killing an ambassador. so there are a lot of questions that come out of this administration. i'm not talking about impeachment. i just want someone to come clean with the process and

methodology because there is a lot of inconsistencies. >> congressman, thank you very much. we appreciate you being with us. >> you have a great day. >> you, too. >> absolutely. meantime, gentlemen, a number of media organizations have been reporting about how the white house may be trying to convince defense contractors not to send layoff warnings to workers before next month's election. the office of management and budget sent a memo last week saying the government could cover the cost that companies would face if they run into legal troubles for not properly warning those workers. here's the federal law and what it says. it says that companies with 100 or more workers must provide 60 days notice before mass layoffs or plant closings, or those workers can get up to 60 days of back pay if they are not notified. the republicans are crying foul and eamon javers picks under the story. >> reporter: here's what the omb said in late september -- it is

neither necessary or appropriate for federal contractors to provide warn act notice to employees 60 days in advance of the potential sequestration because of the uncertainty about whether sequestration will occur. i've toualked to employees at t white house and omb about this question. their idea is this -- first of all, there's uncertainty about the fiscal cliff itself, whether it is actually going to happen or not. they say that the warn act is only required for those planning specific cutbacks and specific plant closings and they say since the employers in this case federal contractors don't know that sequestration is going to happen, therefore they don't have any specific information. and also they say it is not within the 60-day window yet, because any defense contracts that are cut as a result of sequestration will happen months into 2013, not right at the top of 2013, because all those contracts at the top of the year are already paid for with last year's money. so therefore, they're saying it

would not be appropriate. now clearly, the white house has a political interest in not having a lot of defense contractor employees, particularly in northern virginia, a battleground state, get suddenly very, very nervous about their jobs and their economic futures. so the white house has an incentive not to want those notices to go out, and that is why republicans are saying their interpretation of the warn act is that these contractors should be allowed to issue these warning notices and to stay on safe ground. >> a eamon, thank you very much. it is a complicated story. now senator john mccain joins us. senator, a very complicated story. thanks for joining us. give us your reaction to eamon's story. obviously there are a lot of moving parts given the time of year we are at and gifbt looming fisc fiscal cliff. what is your reaction to some of the accusations being made out there? >> i'm past the point of outrage that the things and measures

that this white house would take. you remember the national labor relations board, he appointed people to those positions even though we were in recess as the constitution dictates. i've seen so much overreach. we're about to see some regulations concerning cyber security that completely bypass congress. so this is a presidency and administration that is breathtaking. but on the specifics of the warn act, here's the deal. everybody knows that it is in the law now that there will be some $460 billion in defense cuts beginning on the first of january. these industries are going to have to accommodate to that. and so they are going to have to take in consideration what is in the law, and that -- and the warn act says that when these layoffs are impending, people deserve 60 days notice. i mean those are fundamental

facts and now obviously for pure political reasons, they are saying that those notices don't have to go out on the first of november five days before the general election. >> what is your reaction to the white house contention and those within the administration that say with the looming fiscal cliff and the uncertainty surrounding that, that we really don't know whether or not some of these things will happen come the first of the year, and we don't know what the role will be in terms of the defense contractors, and, given the state of the world right now, some of these cuts may not take place. do you believe that? it doesn't sound like you do. you don't think that that gives them some cover? >> the law is the law. the law is that $460 billion is going to have to be cut out of defense. they should be planning for that now, because those cuts are supposed to begin on the first

of january. those are facts. facts are stubborn things. since when do we disobey laws because we anticipate changes in the law? i have never heard of such a thing and i think it is outrageous to make that assumption because that's not how government's supposed to work. >> let me turn you, if i could, to the employment report of this morning, senator. i don't know whether you were able to hear the previous conversation -- >> yes. >> -- but jack welch tweeted out this morning that he basically doesn't believe these numbers, the 7.8% unemployment rate and he alleged that those numbers were manipulated by the administration. we just had a republican congressman on who believes the same thing. what's your opinion? what do you make of this number, and given what you see in your own backyard, does it ring true? >> well, i think that it's pretty significant that for the first time in nearly four years of this administration that

we've gotten down to below 8%. they're the same ones that when we passed the stimulus package back in 2009 that said the unemployment rate would go at least to 6%, and probably lower. and when we passed obama care they said the same thing. but i think it is some good news for americans. i think that a lot of families are still hurt very, very badly. depending on how you count it, 23 million people are still out of work. a lot of this data is people who are part-time unemployment. but i can't -- frankly, i'm not enough of an economist to question exactly what those numbers are. our discussion about the warn act that just took place where there are blatant violations of the law -- i wouldn't put anything past this administration, the same one that trotted out our ambassador to the united nations five days after an al qaeda affiliated act

of terror took place in libya to tell the american people that it was a spontaneous demonstration caused by a video and i'm not making that up. >> senator mccain, i don't get a chance to talk to you very often so i'd like to keep you for just a couple minutes longer and talk to you about those foreign policy issues. >> it is my pleasure. >> the world, as we reported here on cnbc, seems to be in quite a bit of disarray, whether you are talking about the situation in libya or whether you're talking about iran, iraq. there are so many parts of the world that are in conflict. give me your view of where the united states foreign policy stands right now and whether or not our weakened economic condition has contributed to some of the unrest that we've seen around the globe. >> i'm sure that the weakened economy has diverted americans' attention, understandably, to domestic issues and i understand that. the middle east is unraveling because of a total lack of american leadership, of a president who only wants to

withdraw. he said the surge wouldn't work in iraq. it succeeded. in the words of general keene, the architect of the surge, we won the war and we're losing the peace. you'll see this morning that it's unraveling. al qaeda's on the comeback. iranian aircraft are over flying iraq supporting bashar al assad. in afghanistan because we tell them we're leaving, we now have this terrible afghan-on-american shooting, and all the president says is -- we are leaving, we are withdrawing. the iranians don't think we're serio serious because we spend our time selling israelis not to attack. the most shameful thing in american history in syria, while 30,000 people are massacred there, the iranians have people on the ground and the massacre goes on. everything they said would happen if we intervened has now

happened because we didn't intervene, including rising influence of al qaeda in syria. it's terrible, it's disgraceful, and it's feckless and it is a president who believes in leading from behind. >> senator mccain, thank you very much for joining us. we hope you'll come back and join us again soon. >> any time. we have called the white house to invite them to put a representative on to talk about either of the two jobs stories we just covered. we have not heard back. but we've got a guy who's really just as good on it. jared bernstein, former advisor to vice president joe biden is with us. mr. bernstein, always nice to see you. >> thank you. >> let's talk first about the most recent story we talked about, and that is the idea that the administration is effectively giving a pass on a law to companies that might otherwise be required to give 60 days of notice that layoffs were impending. senator mccain calls it a blatant violation of the law.

do you agree? >> no, i disagree. by the way, i'm not going to say there is not some politics in here. of course, there is. but i thought eamon javers gave a very good and complete explanation of what's going on here, and certainly senator mccain amped up the politics. facts are, that absent a certainty that layoffs are coming, there is no requirement to send out warn act notices. and by the way -- most people -- and i would argue the markets -- believe that the fiscal cliff issues will be resolved. now, that's not a sure thing. but i would argue that that is the way of most people's perspective on this. >> but it's not merely a waiver on the idea of notice. this administration has said, if you have a lawsuit that arises because of this, we will leap in and pay whatever damages are called for here. that's going a step farther, isn't it, jared? >> it is. it is. i agree.

i think that is a fair point that goes the other way towards the politics. but, that said, the warn act is not being violated here, and yes, i agree, there are politics in play here. but eamon's exactly right. absent certainty -- in fact, i would argue that if there is a likelihood, it's that those kinds of layoffs wouldn't occur. one other important thing eamon said that's really true -- these kinds of military contracts work on employment at these contractors with a lag. the projects they're doing now were funded as much as a year ago. that's where those outlays are coming from. so that's also inconsistent with the need to send out warning notice. >> let me get your quick reaction to some allegations that the labor department numbers this morning may have been manipulated. you probably heard my skepticism about those allegations. >> i am deeply, deeply incensed by there. i very much appreciated how hard you were drilling that congressman, but in fact he shouldn't have even been on tv. jack welch should be ashamed of these allegations.

we are a financial market station. we have a responsibility not to give oxygen to such unsubstantiation about an agency with incredible statistical integrity of the bureau of labor statistics. that's not saying that statistics don't have errors built in to them, because they're based on samples, and those errors are nonsystematic, they don't have a political bias, and some statistics do change month to month. that's absolutely true. but the idea that they have a political thumb on the scale is absolutely ludicrous. we should -- we shouldn't give one ounce of oxygen to that nonsense. >> jared bernstein, thank you very much for being with us. sue? ty, as you may recall, yesterday our senior correspondent scott cohn had some breaking news here on "power lunch" on a medicare fraud bust. he has a quick correction for us right now. scott? >> that's right, sue. yesterday around this time during our report on a nationwide law enforcement operation targeting medicare and medicaid fraud, we included aerial video that showed the

offices of always home care in miami. that business was not implicated in any way in yesterday's operation. and we regret the error. tyler? >> scott, thank you very much. but we have more to tell you about. did president obama just advance his cause in the election? ahead, the head of the national urban lead and the former special assistant to george w. bush will face off next. quite a day we got going here. also ahead, what must happen to bring the individual investor back? a look at all these stocks hitting all-time highs today. look at walmart. now at 75 after languishing around 50. philip morris, ibm, our parent company comcast, and google at $770. back in two. boring. boring. [ jack ] after lauren broke up with me, i went to the citi private pass page and decided to be...not boring. that's how i met marilyn... giada... really good. yes! [ jack ] ...and alicia. ♪ this girl is on fire

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time for the countdown today. we're talking jobs and the election. mark moriel, the former mayor of new orleans, jobless rate the lowest since the president took office. mark, we're putting out whether this furthers his chance of retaining the white house. >> i think it is good news for the people of this nation that unemployment has fallen before 8%. but it also gives the president an opportunity to say i kept my promise to bring unemployment below 8% and all those who

suggest that the president shouldn't take credit have to remember that they also criticize the president. so i think it is certainly a good thing and a correct thing for the president and his stewardship of the economy to get some credit because the unemployment rate is now below 8%. >> ron, obviously these numbers are not without those who were skeptical about the legitimacy of those numbers. >> i'm a little skeptical but again, there is not a promise made by president obama and a promise kept. when the president was coming into office, his economic team and jared bern teenstein our previous guest predicted if the stimulus package had gone into place unemployment would be 5.6% right now. it is at 7.8%. i can't look statistically and say, but for president obama's actions or his economic stewardship or leadership, that unemployment has dipped. 114,000 jobs is really not that many. it is not enough to keep pace with the number of people who are coming into the workforce. so i remain a little bit

skeptical but do i agree with my friend, the mayor, i'm glad that more americans that are looking for job have the opportunity to go back to work. >> to make clear, you do not believe that the economic policies that he has put in place are the reasons that we're seeing this number below 8%. >> absolutely not. to the contrary. i think that it remains as high as it has been is because of his policies and not in spite of them. >> obviously i disagree with that. but i also think that alan west and jack welch are engaging in weapons of mass distraction, trying to distract people's attention from the fact that the unemployment rate has come down and that's a good thing. you can't criticize the president when unemployment is high, and then turn around when it is low and then say, somehow this happened not because of his policies but in spite of his policies. >> i think it is the degree to which it came down and the revisions to previous months. it's the whole package. >> revisions take place all the time.

dls always makes corrections. this is not inconsistent with what happens in the past. let's not distract people's attention from the fact that this is good news for the american people today. >> finish your thought, ron. >> the only thing i was going to say, i find it remarkable we've had the largest drop in the unemployment rate in 30 years, yet we've only add 1d 14,000 jobs. to me again i remain a little bit skeptical. i'm not going to go as far as jack welch but the numbers don't seem to add up to me. >> thank you both. california is beautiful if you can live with some of the things that come along with that golden state. wildfires, quakes and lack of gasoline. jane wells is live in california. >> reporter: tyler, californians will happily pay over $5 for a half-caf machiatto soy. but gas? they go nuclear.

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welcome back. i'm sharon epperson at the nymex. gold closing right now right where we started the week. gold prices closing just around $1,780 an ounce. we're down $14, $15 on the session. of course the fact that we got a better than expected jobs number means that we probably won't see quicker stimulus, though there may not be much change to what the federal reserve has already laid out in terms what have they're doing with monetary easing. gold prices this week have come close to the $1,800 level but have been unable to close above that mark. last week when china's back in

session and we have geopolitics on the horizon, it could be a different picture. keep your eye on south africa in terms in palladium and platinum. back to you. check out these gas prices. they're averaging about $3.80 a gallon pretty much across the country. but imagine this -- what if the u.s. started running low on gasoline? in parts of car crazy, california, my old home, that's become a reality and prices are indeed soaring. jane wells is live in calabasas for us. hi, jane. >> reporter: you know the kardashians moved to calabasas so i'm just going to blame this on them. earlier we were at a gas station in northridge where it was only $4.42 a gallon -- only. they were lined up. here? not so many cars. we're real lly pressing the mart here. could we see gas reach $6 a gallon? people have been making a run on fuel, some stations shut down due to a lack of supply. seems to be concentrated in

southern california mostly. the problems are hidden with refineries just at the same time that in california and only in california we're switching over from a special summer blend of gasoline to a special winter blend of california gasoline, and prices have shot up a record 20 cents in the last 24 hours. >> people are suffering. the unemployment is out. everybody's complaining and they complaining us. they are not complaining the government. >> now, bill, zoom in here. at this particular gas station, the owners have put up signs saying sorry, it's not our fault. we are hearing that some stations that are out have been resupplied but some are only getting half orders. maybe you better get your bass by lunch time or mid afternoon if you don't want to run short somewhere. a consortium has asked the state resources board to give them a waiver so they can use other types of gasoline not usually

allowed in california. the resources board tells us they are still considering that issue. back to you. >> jane, thank you. so what must happen to get individual investors to come back into a market, a market that keeps on rising and are more layoffs coming on wall street? kayla tausche is on the case. >> we've been talking all day about job growth. it is happening everywhere but wall street. we'll give you the layoff landscape and hiring picture for the overall financial industry coming up. a crash management system and the world's only tridion safety cell which can withstand over three and a half tons. small in size. big on safety. zagat just gave hertz its top rating in 15 categories, including best overall car rental. so elevate your next car rental experience with the best.

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welcome back to "power lunch." rick santelli here. capital of the futures world, chicago, cme group floor, in the windy city today's data was surprisingly boring until you looked at the unemployment rate. then it was definitely surprising. a lot of theories but it doesn't matter. the number is what the number is and the rates have moved up. if you look at intraday of 10-year, up five basis points. open up the 1-month chart, two-week high yields. 30-year bond moving even more. that's the reflation trade everybody's talking about, up about seven basis points. one thing that doesn't fit, the dollar index moving the wrong way as it continues to distance

itself underneath 80. maybe the answer lies in how much better canada's numbers were and the canadian dollar one of the currencies putting some pressure on the dollar index. sue, back to you. >> their economy is going great guns. thank you, rick. stocks have been higher on the jobs report. trader reaction from the floor. managing director at i cap is here. bob pisani is here as well. gentlemen, happy friday. we are higher on the trading session certainly but kenny, once again, as you mentioned to us earlier this week, we keep bumping up against those levels that you pointed out to us and we haven't held the gains. >> the high is 1,475-ish. but we keep hitting our head there at 1,460, 1,465 and we can't get through. now we've tested it two or three times. at one point it is either going to go through or not make it through at all and go back the other way. the number came out certainly better than spefkteexpected --

expected 8.2%, went to 7.8%. a lot of discussion i'm sure over the weekend, how did it get there. the market i'm sure is not really trusting it. the market's also had a great move this month. >> we've had a great weekover all. dow transports outperforming. going up four days in a row. we've got s&p essentially at a new high. dow's at a new high. we had decent headline economic data this week. not just the jobs. ism services, auto sales are pretty good, retail sales were fairly good as well. i'm not trying to say this is a 2% economy, at best. not trying to make any claims about a roaring economy, heck new but the markets are at new highs and the data is slowly -- >> despite the fact that the stock market has done very well in the previous quarter, people are fleeing stocks. they don't trust the market. they don't trust the system. they don't trust the returns. even though the market has done extremely well. >> in my view i think it is a crisis of confidence. weem just are not -- like you just said, there have been so

many issues over the last four years with the financial crisis. this whole baby boomer generation of which the three of us are really right in the middle of it. people who are a little bit of older or less who saw a lot of their wealth disappear, they don't have a lot of time anymore, the last thing they're going to do is go back to the market. >> after the 2008 financial crisis, there essentially had been outposted for almost four years. >> what does the system have to do to get them back? >> it we continue improving in the economy -- not a 2% gdp but a 3% gdp, there's going to be a day on the front page of the papers, the stock market is back. that's what's going to do it and the bond funds will start coming down and the money will come into stocks. >> i think you're right. there's this whole generation of people behind us that are afraid. they saw what happened to their parents and grandparents and they go i'm not going there with my money. but until you get that generation to feel comfortable investing in stocks and putting their 401(k) money in stock funds -- >> it happened in the '30s and

happened again in the '70s when i was a college student. i didn't put any money to the stock market. i went to europe and had had a good time. my father bought me a stock and said i hope you do it, i said i don't care, i'm going to europe and hitchhiking. >> 40 years. the '30s, the '70s, and now 2012. >> i want to know why bob had money at the end of college. thanks, guys. have a good weekend. morgan stanley ceo james gore man saying bankers are overpaid and wall street staffing is bloated. no new cuts for now but morgan stanley will reassess staffing in 2013. wall street has cut a half million jobs since the financial crisis. kayla tausche, more layoffs coming? >> you definitely have to think that there will be. but based on today's jobs report you think the financial sector looks pretty good. u.s. financial services business

is adding 13,000 jobs it tto th sector. that's the most in a sing the month since march. looking past the surface, wall street is not out of the woods just yet. when you look at those jobs, most are in react to an uptick in the housing market, adding 700,000 jobs in real estate. rest involving credit and mortgage lending. while the big picture does seem to be improving, big banks still cutting costs left and right. a year's long right sizing process that's kept the numb berp of jobs if the financial industry which peaked at 8. 35 million employees in december, '06. it is now hovering near crisis level lows despite those incremental monthly gains. the landscape across wall street, banks won't be adding jobs any time soon, that's for sure. bank of america is charging forward with a plan to cut $5 billion in annual expenses and cut 30,000 jobs by 2014. 16,000 jobs will be cut by the end of this year. goldman sachs slashing 1,000 jobs and $500 million in expenses. citi in the process of cutting

$4,500 jobs. credit suisse, ubs, each axing 3,500 jobs. morgan stanley cutting 37% of its workforce. jpmorgan possibly the exception. that's the only bank that's added to head count since 2008. but no bank is out of the woods, even with all these cuts. head count doesn't match earnings performance. from the crisis until this year, head count has been cut roughly 7% but earnings have fallen nearly 17%. if investors don't see a better return on equity for the banks, which is one of the worst of all the sectors, this isn't the end. sue? >> thank you, kayla. the ceo of a company behind a stock surging today up 30% on its ipo day is going to join us. he's coming up next. plus, why the foreign minister of spain was the laughingstock at the london school of economics yesterday. but before the break, a new list of stocks hitting multi-year highs and on the list today with the 1% move is abbott labs with a 2% move is whole foods.

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and it's bringing the future forward. coming up at the top of the hour, folks, we are going to debunk the myth of the old boys club, at least whether it comes to financial advisors. two top female money managers are going to talk to us about girl power for your portfolio. and with today's rosier employment picture, according to the number bers todas today, we reasons you ought to stay put and not jump jobs. if you're a recent grad looking for a job or a parent still paying those bills, we look at why college tuition continues to rise and what can be done to stop it. lots of things coming up at

the top of the hour for this friday edition of street signs. dining inining -- there is bright on the ipo front. fleetmattics is up big from the $17 offering price. first here on "power lunch," fleetmattics ceo joins us. the stock is up $5.95 at $22.86. congratulations, sir. >> pleased to be here. >> your company is in a very unique spot. you help your kes mers basically control their costs in trucking and shipping and vehicles by keeping track of the data. i was stunned at how much data you actually collect. tell us about that. >> that's right. we collect this data realtime from the vehicle and really what we provide is a transformation of that data into actionable

intelligence. so a small business owner could take action, reduce costs and improve productivity. >> how many clients do you have at this point in subscription base? >> subscription based. we have over 281,000 subscriptions representing over 16,000 small to medium sized businesses. we've been growing that substantially and we believe we're in a great market opportunity. most of these customers do not have any solution in place today so we've got a great opportunity to grow the business. >> we just did a piece from california about gas prices out there. i would assume that economy would incorporate fuel economy, all sorts of things. are there certain data points that are more important to these businesses than others is sl it is really a combination of a lot of of things. we track fuel usage, optimization of routing between service calls. speed utilization, looking at time of location. we're really giving the business owner an inciteful view of what's happening with his mobile assets. >> you raised a lot of money

today. >> we're going to continue to grow the business. we have a great opportunity in untapped market, underpenetrated. we're going to continue to invest in sales and marketing and we have some opportunity to continue to look at accelerating product development to sell back to our install base. >> maybe an acquisition along the line? >> an acquisition certainly will figure into the mix as well. >> all right. congratulations, sir. nice to have you with us. fleetmattics ceo jim traverse. spain's finance minister speaking last night at the london school of economics. but what did he say that made the crowd start to laugh? take a listen. >> spain doesn't need a bailout at all. you know, spain -- >> can you have the chance to ask your question later. >> yes, you heard right. spanish finance minister said the country doesn't need a bailout. audio not great, but trust me, they're laughing at him. they're also protesting at the event saying spain for sale.

bankers get too much money? wait until you hear who's saying it this time. plus, 50 years of james bond. how much is all that stuff 007 has used in the movies really worth? for the release of skyfall, we'll run you through some very interesting numbers. mike rowe here at a ford tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from?

your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee... affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern. buy four select tires, get a $60 rebate. use the ford service credit credit card, get $60 more. that's up to $120. where did you get that sweater vest? your ford dealer. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again.

rundown time with our own kayla tausche. steve jobs died one year ago today. let's talk about his legacy and apple moving forward. any reflections a year hence? >> i think that the company has been lucky in that they've seen the stock go up 60% since steve jobs' death. but i think they have to be really careful. i think it is a good time for tim cook to take some notes out of steve jobs' playbook. i certainly hope that the company's map for his direction for the company is better than apple maps. >> would jobs have ever let that map app out? >> i don't think so. i think that that is a big point, sticking point, to investors. of course his memory lives on but investors worried that the

stock rally has yououtlasted th product legacy. people say steve jobs would never have let that happen. >> james gore man telling the "financial times" bankers are still overpaid. agree? >> yeah. there is a paradigm shift on wall street. i commend deutsche bank the first bank to come out and say and say we are going to structurally change compensation. shareholders need to be rewarded. when you think of morgan stanley, 23% return on equity, 4% now in employees need to get paid less. >> absolutely. i think this idea of trying to increase compensation when revenues are going down as a way to retain talent, i kind of want to call bs on that. i think we're in some tough times. even traders i know have said it is time for them to cut some of

the fat and time to really make that -- >> would we be okay with fewer bankers? >> somehow we're going to have to go on. former ge chairman and our former boss, jack welch, alleging that the big jobs rate drop was a conspiracy in this tweet. unbelievable jobs numbers. these chicago guys will do anything they can't debate so they change the numbers, end quote. "power lunch" called the white house for response. they referred us to chenlients d earlier by the response by hilda solis. >> i don't think you can call it a conspiracy theory. if you did, why wouldn't you just boost the payroll number while you were at it? secondly, you also can't take offense. these numbers are always squishy and everyone's always going to play them political. >> there are always inconsistencies in the number. it is one thing to point at inconsistencies rightly. there is a payroll establishment survey and household survey. it is quite another thing to take the leap into alleging a

fraud on the scale of watergate, frankly. >> they're good, and to quote an economist from this morning, they're darn good. but not so much as to be conspiratorial. we saw jobs numbers revised for august and july. if we see that in two months for september and october, then that's a conspiracy. but until then -- >> kayla, cindy, thank you very much. and sue, down to you. >> the world's first heard that famous theme song 50 years ago with the premier of "dr. no." in honor of global bond day, we have some items up for sale at christie's celebrating the golden anniversary. a 1st edition copy by ian fleming estimated at $1,600 to $2,400. a complete set of the original movie posters for "thunder ball," the estimated sale price there $9,700 to $13,000. and from "the world not enough," a replica of pierce brosnan's

roadster. and the cufflinks worn by the greek smuggler in "for your eyes only," the estimated price, $1,600 to $2,400. we've gopt boot boone picke talk about what he heard from president obama and mitt romney on energy, coal, nat gas and the keystone pipeline. so which candidate will get his vote? that's coming up. a crash management system and the world's only tridion safety cell which can withstand over three and a half tons. small in size. big on safety.

and those well grounded. for what's around this corner... and the next. there's cash flow options from pnc. solutions to help businesses like yours accelerate receivables, manage payments, and help ensure access to credit. because we know how important cash flow is to reaching your goals. pnc bank. for the achiever in you. pnc bank. if we want to improve our schools... ...what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ...nothing transforms schools like investing in advanced teacher education.

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the dow jones industrial average is up about 44 points. interestingly enough, technology's turning negative with the nasdaq composite down just a fraction. you can also basically call that flat. but the s&p 500 is up about three points on the trading session. but there are 65 s&p companies hitting new 52-week highs today, including walmart, philip morris, ibm, mast mastercard an google, ty. >> as you were saying earlier this hour. >> reporter: are the individual investors pulling money out after rising market and putting it into bonds at precisely the time that an awful lot of smart people think is not there